Virtual Currency Blog
In early 2017, multiple state legislatures have taken action reflecting their recognition of the potential impact of virtual currency and blockchain technology. These actions have ranged from requests for further information regarding the technology to an active debate regarding a specific use case
The Polish virtual currency and blockchain community has compiled a set of best practices in an effort to create unified standards with the aim of allowing this burgeoning technology to reach its full potential.
Newly proposed amendments to the Delaware General Corporation Law (DGCL) would allow corporations to use blockchain based technology for corporate recordkeeping. If these amendments are approved and enacted, the DGCL will streamline and modernize the way corporations maintain records.
On January 31, 2017, attorney Jeffrey A. Wertkin was arrested at a Hilton Garden Inn in Cupertino, California for attempting to sell a sealed court document in exchange for Bitcoin.
In the wake of the collapse of cryptocurrency exchange, Cryptsy, due to its founder’s fraud, investors are now targeting Coinbase as a supposed aider and abettor of that fraud.
An Initial Coin Offering has become a popular way for virtual currency entrepreneurs to raise funds for a new project or concept. Anyone with internet access can create and/or invest in an ICO in just a few steps. This type of venture capital model, a hybrid between initial public offerings and crowdfunding, has been used to finance many virtual currency projects. However, as state and federal regulators have not enacted disclosure regulations that are specific to ICOs, there is little protection for investors. In order to maintain investor confidence, ICO issuers must proactively self-regulate and engage in responsible disclosure practices until a regulatory framework is in place.
A Federal Court recently approved an IRS John Doe Summons that requires Coinbase to identify all of its US account holders and provide substantial personal and transactional information concerning those users. Berns Weiss LLP’s managing partner is seeking to intervene in the government’s proceeding to protect the rights of Coinbase’s users (and by extension all virtual currency users) from this overbroad Summons that the IRS appears to have issued in bad faith.
Purely Digital Currency Transactions Would Not Fall Within Scope of Illinois’ Transmitters of Money Act According to the State’s Proposed Guidelines for Digital Currency Regulation
The Illinois Department of Financial and Professional Regulation has released proposed Digital Currency Regulatory Guidance (“Guidance”), which “expresses the Department’s interpretation of Illinois’ Transmitters of Money Act (“TOMA”) and its application to various activities involving digital currencies.”